Liberty Mutual Car Insurance: Review 2023

The overall performance of Liberty Mutual was 4.5 stars. The editorial staff at NerdWallet is responsible for assigning those stars. Ratings for financial stability and customer satisfaction are factored and considered, as is complaint data from the National Association of Insurance Commissioners. According to direct premiums written, Liberty Mutual ranks as the sixth-largest car insurance company in the United States. Liberty Mutual provides many types of insurance to both individuals and businesses, including auto insurance. This article further gives a full review of Liberty’s mutual car insurance coverage, rates, and competitors.

What Is Liberty Mutual Car Insurance?: Overview

Liberty Mutual is a well-known insurance company that provides various insurance coverage products, including car insurance. Their car insurance policies offer coverage for damages, injuries, and liabilities that may occur during accidents or other incidents involving your vehicle. Liberty Mutual typically offers standard coverage options such as liability coverage (which pays for other people’s injuries or damages if you’re at fault in an accident), collision coverage (for damage to your own car in an accident), and comprehensive coverage (for non-collision-related damages like theft or natural disasters). Additionally, they offer optional coverage like roadside assistance, rental car reimbursement, and custom parts and equipment coverage.

Liberty Mutual is also known for its customization options, allowing policyholders to tailor their coverage according to their specific needs and preferences. They often promote features like accident forgiveness, which means your rates may not increase after your first accident if you qualify, and better car replacement, where they help you replace your totaled car with a newer, similar model.

As with any insurance provider, it’s essential to carefully review their policy terms, coverage options, and pricing to ensure you choose the right plan for your individual requirements.

Types of Car Insurance Plans from Liberty Mutual

Liberty Mutual was founded in 1912 and has its headquarters in Boston. According to J.D. Power and Associates’ annual auto insurance study, it fares worse than average. Online reviews, however, reveal both happy and unhappy customers.

Options, stability, and adaptability are just a few of the many advantages. Furthermore, the company insures drivers all over the country, giving them more options for comprehensive coverage and making it easier to insure drivers with less-than-perfect records.

Its policies might provide the bare minimum required by law, the coverage needed to get a car loan, or full protection for families that want to be ready for everything. Options for its coverage include, among others:

#1. Bodily Liability Coverage

Liability insurance helps pay for the medical bills of others who were hurt in an accident that was your fault. The majority of states mandate some form of liability insurance, but experts advise purchasing additional coverage to cover more expensive accidents.

#2. Property Liability Damage Coverage

The insurance will pay for the other party’s vehicle repairs and property damage if you cause an accident and are found at fault. The very minimum required by your state is all you need, but many experts advise raising that amount to better protect yourself in the event of a serious accident.

#3. Medpay Coverage

No matter who was at fault in a collision, medical payment coverage will cover the costs of treatment for you and your passengers. Some states mandate medical insurance. Personal Injury Protection (PIP) or similar terms may be used in your area.

#4. Comprehensive Insurance

Comprehensive coverage will pay to have your car fixed or replaced if it sustains damage as a result of a non-collision event like theft, fire, vandalism, or animal contact.

#5. Collision insurance

With collision insurance, you won’t have to worry if you crash into another vehicle or a stationary object.

#6. Uninsured/Underinsured Motorist Coverage

If an uninsured driver causes damage to your vehicle or injures you and your passengers, uninsured motorist coverage (UM) can help cover the costs. Some states mandate UM coverage, while others allow it to be optional (with a written opt-out). If you are involved in a car accident with a driver who does not have enough liability insurance, underinsured motorist coverage can assist in paying for your medical bills and the repairs to your vehicle.

Additional Coverage Options (Riders)

Liberty Mutual Insurance, a leading provider of car coverage, provides policyholders with a wide variety of discounts and optional riders. There are some drivers for whom this policy offers the best combination of price and coverage available.

#1. Deductible Fund

You can get a $100 annual reduction in your deductible for just $30 each year. If you keep making contributions to the fund for longer than five years, you may receive benefits that are greater than your deductible.

#2. Lifetime Repair Guarantee

After an accident, the organization will put you in touch with a local repair facility that meets their standards. The warranty will pay to fix any problems that arise down the road if the first repair isn’t enough, but it won’t follow you if you sell the automobile.

#3. Rental Car Reimbursement

While your damaged vehicle is being repaired at a Liberty Mutual-approved repair facility, you can use this coverage to cover the cost of a rental vehicle. Policyholders can establish a daily maximum. If you reside in a more remote place, you may prefer to trade greater rent for better perks.

#4. Gap Insurance

If your car is written off, gap insurance will pay out the remaining lease balance or buy you out of any remaining loan. It’s not uncommon for borrowers to go underwater on their auto loans, especially after purchasing a brand-new vehicle. Gap insurance protects you from being stuck paying off a loan on a car you no longer have.

#5. 24-Hour Roadside Assistance

The insurance company will tow your automobile or provide you with a jump start if your car breaks down. Fuel and other standard services might be delivered to you by roadside assistance companies as well.

How Long Does Liberty Take To Pay a Claim?

The time it takes for Liberty Mutual or any insurance company to process and pay a claim can vary based on several factors. These factors include the complexity of the claim, the extent of the damages, the availability of necessary documentation, and the state regulations governing insurance claim processing.

In general, Liberty Mutual strives to process claims efficiently and settle them as quickly as possible. Simple and straightforward claims, such as minor car damages or small-scale incidents, might be processed relatively quickly, often within a few days to a couple of weeks. However, more complex claims, like those involving extensive property damage, legal complexities, or injuries, can take longer to resolve. Such cases may require detailed investigations, assessments, and negotiations, leading to a longer processing time, potentially several weeks to months.

It’s important for policyholders to promptly provide all necessary information and documentation to expedite the claims process. Additionally, keeping open communication with the claims adjuster and staying informed about the progress of the claim can help ensure a timely resolution. It’s advisable to refer to the specific terms and conditions outlined in your policy and contact Liberty Mutual directly for precise information regarding the processing time for your individual claim.

Liberty Mutual Insurance Rates

Liberty Mutual’s car insurance is more expensive than competitors, and policyholders have conflicting feelings about the company. However, Liberty Mutual’s car insurance rates were 21% to 36% higher than the national median, and that was true whether you were looking for liability-only or full coverage.

Liberty Mutual charges 53% more to drivers with a history of at-fault accidents than to drivers without such a history. In contrast, after an accident, rates increase by only 23% for Travelers.

In addition, the type of driver you are, the vehicle you drive, and your location all play major roles in determining your rate of car insurance. We advise that you shop around for insurance quotes from several companies.

Liberty Mutual Car Insurance Rates vs. Competitors

Accident rates are based on a full-coverage policy.

Liberty Mutual Car Insurance Discounts

Liberty Mutual provides many car insurance rate discounts to its safest customers. Taxes, fees, and savings may differ from state to state.

• Accident-free discount: A clean driving record will net you discounts.
• Accident prevention course discount: Taking a state-approved course on how to be a safer driver can net you a price break in some jurisdictions.
• Advanced safety features discount: You could get a lower rate if your automobile has safety features like adaptive headlights, anti-lock brakes, and electronic stability control.
• Alternative energy discount:  Owners of hybrids or electric vehicles are eligible for a price reduction.
• Anti-theft discount: Insurance companies will give you a break if your vehicle is equipped with anti-theft measures.
• Claims-free discount: Insurance rates might be reduced for drivers who have never filed a claim.
• Early shopper discount: Get a rate and acquire car insurance from Liberty Mutual before the policy you have now expires, and you’ll save money.
• Good student discount: This discount is given to families who have a full-time student with a B average or higher.
• Homeowner discount: Homeowners may be eligible for reductions in their tax burden.
• Military discount: Liberty Mutual offers special rates to veterans, active duty service members, and members of the reserves as a way to say “thank you” for their service to our country.
• Multi-car discount: If you insure multiple vehicles with Liberty Mutual, you’ll receive a discount.
• Multi-policy discount: If you have multiple policies with Liberty Mutual, such as car and home, you can save money by bundling them together.

Why Is Liberty Mutual Car Insurance So Expensive?

The rate of car insurance, including policies offered by Liberty Mutual, can vary significantly based on a range of factors. Insurance premiums are determined by assessing various risk factors associated with the policyholder and the insured vehicle. Liberty Mutual, like other insurers, considers factors such as the driver’s age, driving history, location, type of vehicle, usage patterns, and even credit score. If you’re perceived as a higher risk based on these factors, your insurance premiums could be higher.

Additionally, the level of coverage and the types of optional features you choose can influence the cost. Policies with comprehensive coverage, lower deductibles, or additional features like roadside assistance tend to be more expensive.

Furthermore, the overall economic environment, including factors like inflation, repair costs, and the frequency and severity of claims in a specific region, can impact insurance rates. Insurance companies like Liberty Mutual need to adjust their premiums to cover the costs of potential claims while maintaining a profit margin.

Shopping around for quotes and comparing different insurance providers can help you find a more competitive rate based on your specific circumstances. It’s essential to consider multiple factors and review the coverage options to make an informed decision about your car insurance policy.

Does Liberty Mutual Deny Claims?

Yes, in some cases, insurance firms like Liberty Mutual may refuse to pay a claim. A claim denial may result from a variety of factors, such as insufficient coverage, policy restrictions, a lack of supporting documentation, or events that the policy does not cover.

However, it’s worth noting that different jurisdictions have different laws and regulations governing insurance businesses. In most cases, they must give the policyholder a full explanation of why their claim was denied. Policyholders can appeal a claim denial and get more information by contacting their insurer.

If you are worried about a claim being refused, familiarizing yourself with the specifics of your insurance policy’s terms, conditions, and exclusions is essential. Keeping an open line of contact with your insurance company, submitting all necessary paperwork as soon as possible, and following the claims process precisely can all increase the likelihood of a favourable claim settlement.

How Long Does It Take Liberty Mutual to Review a Claim?

The time it takes for Liberty Mutual, or any insurance company, to review a claim can vary based on several factors. These factors include the complexity of the claim, the extent of damages or injuries, the availability of necessary documentation, and the specific processes of the insurance company.

Simple and straightforward claims, such as minor car damages, might be reviewed relatively quickly, often within a few days to a couple of weeks. However, more complex claims, such as those involving extensive property damage or injuries, might require a more in-depth investigation and negotiation process, leading to a longer review period, potentially several weeks to months.

It’s important to promptly provide all necessary information and documentation to your claims adjuster to expedite the review process. Additionally, maintaining open communication with the claims representative and staying informed about the progress of your claim can help ensure a timely review and resolution. For the most accurate and specific information about the review timeline for your individual claim, it’s best to contact Liberty Mutual directly.

Is Liberty Mutual Hard to Deal With?

The ease of dealing with Liberty Mutual, or any insurance company, can vary based on individual experiences and circumstances. Some customers may find the process smooth and satisfactory, especially for straightforward claims, while others might face challenges, particularly in complex or disputed situations.

Customer satisfaction often depends on factors such as the efficiency of claim processing, communication with company representatives, the clarity of policy terms, and the resolution of issues. It’s essential to read the policy thoroughly, understand coverage details, and maintain clear communication with the company to enhance your experience.

If you are concerned about dealing with Liberty Mutual or any insurance provider, it may be helpful to research customer reviews, seek recommendations, and ask questions about the coverage and claims process before purchasing a policy. Additionally, maintaining organized records, promptly reporting incidents, and following the claims process accurately can contribute to a smoother experience when dealing with any insurance company.

Liberty Mutual Insurance Competitors

Here are some of the best Liberty Mutual top competitors in the insurance industry:

#1. State Farm

When compared to the national average, State Farm’s auto insurance premiums are significantly lower. In addition to its high customer satisfaction rating, State Farm also boasts a low complaint volume. Only authorized captive agents are able to purchase State Farm, unlike Liberty Mutual. That’s why, whether over the phone or in person, State Farm is the only company whose agents will discuss your needs and provide you with a price. Agents are instructed to inform clients of all discounts and bundle options in order to provide the most affordable coverage possible.

Although State Farm is the more affordable and strong competitor, Liberty Mutual Insurance has numerous discounts to help you save money. When compared to State Farm, it offers more types of coverage, such as new car replacement, accident forgiveness, and gap insurance.

#2. Nationwide

Customers were more satisfied with and had fewer complaints about their auto claims experience with Nationwide Auto Insurance. Policyholders who drive for ridesharing services like Uber and Lyft can also get coverage through the company. Price-wise, both before and after applying discounts, Nationwide is the clear winner.

When it comes to quoting and binding insurance policies, Nationwide partners with some broker insurance agents. The majority of insurance, however, is now purchased via the Internet. Unlike Liberty Mutual, it does not provide any special coverage for specific professions or occupations.

#3. GEICO

GEICO Auto Insurance has fewer complaints, and policyholders can submit requests for quotes and contact the company anytime 24/7/365 through its dedicated website, phone, or email. In addition, its platform allows customers to combine insurance and control it centrally. GEICO has a lot of happy customers thanks to its inexpensive rates and simple interface. Even if customers don’t invest in a deductible fund or pay any additional fees, many of the company’s adjusters will still employ standard industry practises to help them save money.

When its policyholders are at fault, GEICO may be slow to settle claims from third parties. Furthermore, unlike Liberty Mutual, GEICO does not have a network of local insurance agents. For this reason, Liberty Mutual may be the best option for customers who are less comfortable with technology or who prefer a more hands-on approach. Again, an insurer may appeal to teachers and military personnel because of promotions and discounts tailored to their professions.

#4. Allstate 

Allstate is a major competitor to Liberty Mutual in the car insurance industry, providing a wide array of insurance products and services. Known for its extensive network of agents, Allstate offers personalized assistance to customers. Their car insurance policies include standard coverage options such as liability, collision, and comprehensive coverage, along with various additional features and discounts tailored to meet individual needs. Allstate is recognized for its innovative tools like the “Drivewise” program, which tracks driving habits to offer potential discounts. The company emphasizes customer satisfaction and often promotes its claim satisfaction guarantee, promising a smooth claims experience for policyholders. With a strong presence in the market, Allstate competes with Liberty Mutual by providing comprehensive coverage, competitive rates, and a focus on customer service.

#5. Progressive

Progressive is a prominent competitor to Liberty Mutual in the car insurance industry, renowned for its innovative approach and user-friendly services. As one of the largest auto insurance providers in the United States, Progressive offers a variety of coverage options tailored to different customer needs. Their Snapshot program tracks driving behaviour, potentially leading to discounts for safe drivers. Progressive is known for its Name Your Price® tool, which enables customers to find policies that fit their budget. The company stands out for its commitment to technology, offering online tools and mobile apps for policy management and claim processing.

Progressive’s commercials often highlight their comparison tools, emphasizing their competitive rates. They provide standard coverage options such as liability, collision, and comprehensive insurance, along with additional features like roadside assistance. With a focus on customer convenience and innovative services, Progressive competes with Liberty Mutual by appealing to tech-savvy customers seeking a streamlined insurance experience and competitive rates.

Does Liberty Mutual Offer a Diminishing Deductible?

Yes, Liberty Mutual offers a diminishing deductible through its deductible fund. When you file a claim for collision or comprehensive coverage on your car, the insurance company will deduct your deductible from your payout. Each year, drivers can get their deductibles lowered by $100 thanks to the deductible fund.

Liberty Mutual will reduce your deductible by $100 annually if you contribute $30 per year to the deductible fund. Once claims are paid, the amount in your deductible account will be applied towards your deductible.

Let’s imagine you participate in the deductible fund for three years before you have an accident and your deductible is $500. Your deductible fund will pay the remaining $300, bringing your total deductible down to $200.

Liberty Mutual Car Insurance Customer Review

Customer service may be just as crucial as cost when deciding on an insurance provider. Confidence in a positive employer encounter, especially during a stressful or unexpected time, is crucial.

For this purpose, we looked at data from customer satisfaction surveys run by independent organizations like J.D. Power, which polls consumers annually about their experiences with various insurance companies and policies before assigning each one a numerical grade out of a possible 1,000. We also considered AM Best’s evaluations of companies’ financial strength, which can provide insight into an organization’s track record of paying claims.

Other Types of Liberty Mutual Insurance

Liberty Mutual provides coverage for a wide variety of vehicles, besides cars. Additionally, you might look into Liberty Mutual’s classic car insurance if you have a passion for collecting vintage vehicles.

Liberty Mutual also provides the following additional coverage options:

• Accident insurance
• Critical illness insurance
• Identity theft insurance
• Landlord insurance
• Mobile Home Insurance
• Condo insurance
• Umbrella Insurance
• Homeowners Insurance
• Renters Insurance
• Pet Insurance
• Small business insurance
• Life insurance

Is Liberty Mutual Car Insurance Good or Bad?: Bottom Line

Liberty Mutual’s car insurance, like that of any other competitor, varies in quality from customer to customer. It may have pleased some customers with their coverage selections, customer service, and claims process. Some customers may have a negative impression because of problems with their claims or contact with the company’s staff.

Before making a decision, read reviews, compare costs, and review policy specifics. Think about your specific requirements and preferences in terms of coverage and customer service. Not everyone will benefit optimally from the same approach.

Researching customer feedback and reviews, comparing policies, and getting in touch with the firm directly are all effective ways to figure out if Liberty Mutual car insurance is right for you.

Frequently Asked Question

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Reference

• nerdwallet.com
• bankrate.com
• money.com
• businessinsider.com
• valuepenguin.com